Colorado Springs Real Estate-Bamberger Report Released- Two Scenarios

David Bamberger and Associates have published an analysis of the Colorado Springs housing market for 15 years. This is a significant analysis that is designed to provide insight into current industry trends and to draw conclusions about where the market is likely to go in 2008 and through 2009.

Here is a brief excerpt that looks at two possible scenarios for the Colorado Springs Real Estate Market... 


“Melt-down” scenario:

1. The Fed’s action to lower short term rates was too late. The US economy falls into recession in the early months of 2008.
2. In 2008 the Colorado Springs economy follows the path set by the US economy. Feeling the impact of the US recession, the local economy slows dramatically. Single family housing starts decline to 1,600 in 2008.
3. In 2009 the national economy starts to pull out of the slump and the local economy soon follows. In 2009 single family housing starts increase to 2,550.

"Recovery” scenario:

1. The Fed’s action lowering short term interest rates was successful. The US economy dodges a bullet and stays on a path of moderate growth.
2. In 2008 the Colorado Springs economy follows the path set by the US economy. The local economy dodges a major slow-down. Single family housing starts climb to 2,950 in 2008.
3. In 2009 the national economy continues to grow at a moderate pace and the local economy follows. In 2009 single family housing starts increase to 3,850.

Either way, our local economy appears to be closely tied to the national economy and per Mr. Bamberger's assessment it looks like we are going to be in a "Buyers Market" until late 2009!